88 Energy Ltd (AIM:88E, ASX:88E, OTC:EEENF)'s managing director, Ashley Gilbert, said the discovery group is now 'looking to formalise a farm-out process' to attract strategic partners to develop Project Phoenix on Alaska's North Slope following the success of the Hickory-1 well.
During the first quarter, it demonstrated notable success with the Upper Slope Fan System (USFS) reaching a peak flow rate of over 70 barrels of oil per day. The Shelf Margin Deltaic (SMD) reservoir also showed promising results with a flow rate of approximately 50 barrels per day.
These results are expected to lead to the development of long horizontal wells, which typically yield significantly higher outputs compared with vertical wells. The company plans to seek independent contingent resource declarations based on these positive outcomes.
Gilbert added: "This quarter marks a pivotal moment for 88 Energy with the successful oil flow at Hickory-1, enhancing Project Phoenix's potential. We are now looking to formalise a farm-out process to attract strategic partners for further development."
In addition to Project Phoenix, 88 made progress with its other ventures. The company completed the transfer of a 20% working interest in Namibia's Petroleum Exploration Licence 93 (PEL 93), with seismic acquisitions planned for mid-2024.
Project Leonis, in Alaska, is progressing well, with a prospective resource estimate expected in the first half of 2024 and several parties engaged in the farm-out process.
Project Longhorn, in Texas, also showed steady performance with an average production of 328 barrels of oil equivalent per day in the first quarter and two of the planned five workovers underway, which are projected to conclude under budget.
On the financial front, 88 maintains a strong position with a cash balance of A$17.5 million as of March 31 and no debt.